Cloetta calls SEK 1 billion secured bonds due 2018 at 103

By Susanna Moon

Chicago, Aug. 17 – Cloetta AB said it called its SEK 1 billion of outstanding senior secured bonds due 2018 as of part of a debt refinancing.

The notes will be redeemed at 103% of par, or SEK 1.03 million per SEK 1 million of bonds plus accrued interest up to and including the redemption date of Sept. 19, according to a company notice.

The record date is Sept. 12.

Cloetta said on July 25 that it planned to redeem the senior secured notes issued in September 2013 using proceeds of a SEK 1 billion bridge loan.

The company said it had obtained SEK 3.7 billion of term and revolving facilities with four lenders, with proceeds to be used to help refinance its bank financing.

The facilities consist of a €175 million three-year term loan, a €120 million five-year revolving credit facility and a SEK 1 billion one-year bridge loan.

The transactions are expected to reduce the group’s net financial items by about SEK 140 million over a five-year period, with SEK 50 million in 2017, the company previously noted.

The new agreement is unsecured and, accordingly, the remaining security afforded to the holders of the senior secured notes will be released in connection with the refinancing of the company’s existing bank financing.

The removal of all security over Cloetta’s assets is intended to increase operational flexibility and reduce costs for Cloetta, the company said.

Cloetta is a Kista, Sweden-based chocolate and sugar confectionery company.

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